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Foreign Brands in Japan: New Balance's Resilient Journey

Updated: Jun 12

New Balance "Lighter Than Air"
New Balance "Lighter Than Air"

New Balance has been in business for over 100 years, producing some of the world’s most iconic sneakers as one of the largest sporting manufacturers in the world. Few brands embody the “All-American” ethos quite like New Balance. With a foundation built on quality and authenticity, this Boston-based company is quintessentially East Coast in many respects. Interestingly, or perhaps because of these traits, New Balance has achieved a cult-like following on another East Coast—Japan. While Japan’s widespread embrace of Western styles can be attributed mainly to the influence of Kensuke Ishizu "The Godfather of Japanese Prep", the key to understanding this particular, seemingly peculiar, collaborative phenomenon lies within New Balance, their core values and historical roots.


一:The Origins of New Balance

New Balance was founded as the New Balance Arch Support Company in 1906 by William J. Riley, an Irish immigrant in Boston, Massachusetts. Supposedly inspired by the perfect balance of chickens' three-pronged feet, Riley designed a flexible arch support with three support points. In 1927, Riley hired Arthur Hall, who eventually became a partner in 1934. By this point, New Balance had yet to sell any sneakers at all and was instead focused on selling arch supports to workers who stood for long periods.

Sold door-to-door, the New Balance Arch personified the care of the brand from the beginning, with individual fittings conducted before purchase.
Sold door-to-door, the New Balance Arch personified the care of the brand from the beginning, with individual fittings conducted before purchase.

In 1956, Hall sold the company to his daughter Eleanor and her husband Paul Kidd. By 1960, their arch supports had jumped genres, from workers to athletes, prompting them to design the Trackster in 1961, the world's first running shoe with a rippled sole for traction. Despite the Trackster's success, New Balance remained a small operation until the early 1970s when Jim Davis purchased the company on the day of the 1972 Boston Marathon.

No "N" logo on these original NB Tracksters from 1961.
No "N" logo on these original NB Tracksters from 1961.

The 1970s saw Boston become the epicentre of the running boom in the U.S., and New Balance capitalized on this trend. In 1976, the launch of the New Balance 320, the first shoe to feature the now-famous ‘N‘ logo, solidified the brand's reputation. The 320 was voted the number one running shoe by Runner’s World magazine, propelling New Balance to the forefront of the sportswear industry. By the 1980s, New Balance had expanded its product line to include walking shoes and Gore-Tex running jackets. The release of the 574 in 1988 became iconic, further embedding New Balance into sports and popular culture.

The iconic 320 goes on sale, with the now famous "N" logo loud and proud on the side of the shoe.
The iconic 320 goes on sale, with the now famous "N" logo loud and proud on the side of the shoe.

New Balance entered the Japanese market in the mid-1980s, a time when Japan's fascination with American culture was reaching its peak. Japanese consumers were drawn to the craftsmanship and heritage of American brands, and New Balance, with its emphasis on quality and performance, found a receptive audience. The brand's first major success in Japan came with the release of the New Balance 1300 in 1984. Priced at $130 (39,000 yen), the 1300 was marketed as the "very best running shoe ever made," setting a new standard for luxury in athletic footwear.

Limited to 300 pcs, and costing 68,000JPY, these M1300 JPJ, were quick to sell out on release.
Limited to 300 pcs, and costing 68,000JPY, these M1300 JPJ, were quick to sell out on release.
the 1300 was marketed as the "very best running shoe ever made," setting a new standard for luxury in athletic footwear.

Initially, New Balance faced a competitive landscape dominated by local giants like ASICS Corporation and Mizuno Corporation. These brands had a deep understanding of the local market and were well-established. New Balance’s entry strategy focused on leveraging its reputation for quality and innovation. The company partnered with local distributors to navigate the complex retail environment, ensuring its products were available in key locations frequented by its target demographic.

New Balance’s entry strategy focused on leveraging its reputation for quality and innovation.

In 1996, New Balance Japan introduced the MT580, a model that would become iconic in the brand's history. Initially part of New Balance’s trail running line, the MT580 featured a bold, chunky design with a wide, flat sole inherited from the DNA of the 500 series. This model provided outstanding stability and was particularly well-received by the style-obsessed youth subcultures of Tokyo’s Harajuku district.

MT580 won the hearts and minds of the trendsetters in Japan.
MT580 won the hearts and minds of the trendsetters in Japan.

Despite its innovative design, the MT580 faced initial resistance due to its unconventional appearance and higher retail price than other models. However, the model began to gain traction among Harajuku’s fashion-forward youth, who appreciated its unique aesthetic. This grassroots popularity eventually led to a series of high-profile collaborations that would cement the MT580's legacy in the sneaker world.


二:Key Collaborations and Building Brands in Japan

The late 1990s and early 2000s saw New Balance Japan forging strategic collaborations that would redefine the brand’s image. In 1999, New Balance Japan partnered with Mita Sneakers, a retailer based in Ueno, and Real MadHECTIC, a Tokyo streetwear label, that eventually stopped business in 2012. This collaboration led to creating the iconic 580 models, which featured unique colourways and design elements inspired by Harajuku culture.

NB MT580 collab sneakers made for the JP market.
NB MT580 collab sneakers made for the JP market.

These collaborations were unprecedented at the time and played a significant role in popularizing the 580 model. The partnership with Mita Sneakers and Real MadHECTIC was the first of its kind for New Balance, and it set the stage for future collaborations with other prominent brands such as Stussy, Inc. , Palace Skateboards, and Stray Rats. These collaborations not only boosted the popularity of the 580 but also helped New Balance establish a strong presence in the Japanese market.


One of the most notable collaborations was with the streetwear brand Stüssy in 2000. This partnership resulted in a limited-edition release featuring bold, eye-catching designs resonating with sneaker enthusiasts and fashion-forward consumers. The Stüssy collaboration was a turning point, demonstrating New Balance's ability to blend performance with high fashion, a strategy central to its success in Japan.

The Tokyo Design Studio played a crucial role in adapting New Balance’s global product line to meet Japanese consumers' specific tastes and preferences.

In 2012, New Balance took a significant step to strengthen its foothold in Japan by establishing the Tokyo Design Studio. The studio focused on research and development in the lifestyle category, creating products that promoted design and innovation. By the fall of 2018, items made by TDS began to be sold as part of the global in-line, further solidifying New Balance’s commitment to the Japanese market.


The Tokyo Design Studio played a crucial role in adapting New Balance’s global product line to meet Japanese consumers' specific tastes and preferences. The studio’s approach was characterized by a deep understanding of local culture and a commitment to high-quality craftsmanship. This led to the development of several key models that became highly popular in Japan and beyond.

MS327 are one of the most popular releases for NB in Japan in recent memory.
MS327 are one of the most popular releases for NB in Japan in recent memory.

One of the most notable creations from the Tokyo Design Studio was the MS327 series, introduced in 2020. This model reconstructed the 1970s retro running shoes with a modern design, becoming a popular choice among consumers. The success of the MS327 demonstrated New Balance’s ability to blend heritage with contemporary design, a critical factor in its ongoing appeal to Japanese consumers.


The Role of Shohei Ohtani


Maybe one of the best to ever do it in baseball, Japan's Shohei Ohtani.
Maybe one of the best to ever do it in baseball, Japan's Shohei Ohtani.

New Balance’s partnership with Shohei Ohtani, the Japanese baseball phenom, has been a game-changer for the brand. Ohtani is known for his dual role as a pitcher and hitter in Baseball worldwide, and since his move from the Los Angeles Angels to the Los Angeles Dodgers as the world's highest-paid athlete, he has become one of the most marketable athletes in the world. New Balance’s collaboration with Ohtani includes custom gear, limited-edition releases, and a series of campaigns that celebrate his unique talents and achievements.

In 2023, New Balance launched a limited edition “Made in Japan” shirt collection designed in collaboration with Ohtani. Inspired by his Japanese heritage, these shirts offered a premium touch and a deeper connection with fans in his home country. Additionally, New Balance created custom-made replicas of Ohtani’s personal glove, which became highly sought after by fans.

Shohei Ohtani x New Balance Signature Logo T-Shirt.
Shohei Ohtani x New Balance Signature Logo T-Shirt.

Ohtani’s influence extends beyond product releases. In November 2023, he partnered with New Balance to gift 60,000 baseball gloves to elementary schools across Japan, highlighting his commitment to giving back and aligning perfectly with New Balance’s values of community and philanthropy.

Baseball gloves were sent out to every Elementary School in Japan.
Baseball gloves were sent out to every Elementary School in Japan.

三:Market Growth and Statistics

Globally, about 80% or about $4.24 billion of New Balance's total revenue in 2022 was from its footwear section; this has grown from a $1.35 billion figure in 2008, and the shoe brand has soared by 214.1% in 14 years. New Balance holds 4% of the global shoe industry, and it occupies 10% of the market share in the US.  New Balance’s strategic initiatives and collaborations have yielded significant results in the Japanese market. The brand’s market share in Japan has steadily increased, with substantial growth in recent years. According to market reports, New Balance's sales in Japan grew by approximately 15% annually from 2015 to 2020, with the 580 model accounting for a substantial portion of this growth.

This growth can be attributed to the brand’s ability to resonate with Japanese consumers through heritage, innovation, and strategic local partnerships.
NB's global penetration has fuelled the brand's global growth and profile.
NB's global penetration has fuelled the brand's global growth and profile.

The success of the 580 and other models has also been reflected in the brand’s overall market performance. In 2021, New Balance’s revenue in Japan reached an estimated $300 million, making it one of the top-performing markets for the brand globally. This growth can be attributed to the brand’s ability to resonate with Japanese consumers through heritage, innovation, and strategic local partnerships.


Today, New Balance is a testament to the power of adaptability and cultural integration. The brand has successfully carved out a niche in the Japanese market, balancing its global identity with local relevance. Key initiatives, such as the opening of the New Balance Roppongi store, reflect the brand’s ongoing commitment to providing tailored experiences for Japanese consumers. Moreover, collaborations with popular Japanese brands and artists continue to strengthen its cultural resonance and market presence.

"New Balance ROPPONGI" 19:06 can be found at Tokyo Mid-Town Galleria 1st floor.
"New Balance ROPPONGI" 19:06 can be found at Tokyo Mid-Town Galleria 1st floor.

New Balance has also significantly invested in digital marketing and e-commerce to reach younger, tech-savvy consumers. The brand’s online sales in Japan have seen double-digit growth, driven by targeted digital campaigns and partnerships with local influencers. This digital-first approach has helped New Balance maintain its competitive edge in a rapidly evolving retail landscape.


四:Challenges and Adaptations

Despite its successes, New Balance has faced several challenges in the Japanese market. The brand has had to continuously adapt to changing consumer preferences and market dynamics. One significant challenge has been the intense competition from domestic brands like Asics and Mizuno and international giants like Nike and adidas. New Balance has focused on innovation and sustainability, introducing eco-friendly materials and manufacturing processes to stay ahead.

The brand’s agility in adapting to these challenges has been a key factor in its sustained growth.
A new grey New Balance 574 that meets the brand's eco-conscious Green Leaf Standard.
A new grey New Balance 574 that meets the brand's eco-conscious Green Leaf Standard.

The COVID-19 pandemic also presented significant challenges, disrupting supply chains and affecting consumer behaviour. New Balance responded by accelerating its digital transformation, enhancing its online presence, and expanding its direct-to-consumer channels. The brand’s agility in adapting to these challenges has been a key factor in its sustained growth.


In addition to market competition and consumer preferences, New Balance has had to contend with issues related to intellectual property protection. The brand has been proactive in safeguarding its designs and trademarks in Japan. This includes taking legal action against counterfeiters and working closely with local authorities to enforce their IP rights. New Balance’s vigilance in protecting its IP has helped maintain its brand's integrity and consumers' trust.

Close call knock-offs, Nyuuz (にゅ~ず) from maker Sangachio in Kobe, Japan.
Close call knock-offs, Nyuuz (にゅ~ず) from maker Sangachio in Kobe, Japan.

Looking forward, New Balance must navigate the evolving retail landscape and increasing competition from local and international brands. The brand's focus on sustainability and technological innovation will be crucial in maintaining its competitive edge. Continued engagement with the local culture, leveraging digital platforms, and enhancing customer experiences will drive future growth.


New Balance has set ambitious goals for the Japanese market to increase its market share and expand its retail footprint. The brand plans to open additional flagship stores in key cities and enhance its presence in smaller regional markets. By continuing to invest in innovation and cultural engagement, New Balance can achieve these goals and further solidify its position as a leading footwear brand in Japan.

Super rare limited edition Mt.Fuji New Balance from 2008.
Super rare limited edition Mt.Fuji New Balance from 2008.

New Balance’s journey in Japan is a testament to the brand’s ability to adapt and innovate in a competitive market. From the introduction of the 1300 and the rise of the 580 model to strategic collaborations and the influence of Shohei Ohtani, New Balance has successfully navigated the complexities of the Japanese market. The brand has become a key player in Japan’s sneaker industry by embracing heritage and contemporary design. Much like IKEA's branding journey in Japan, New Balance has meticulously tailored its strategies to resonate with local consumers, blending global identity with local nuances.


As New Balance continues to evolve, its commitment to quality, innovation, and community will undoubtedly drive further success in Japan and beyond. The brand’s story is not just one of triumphs and tribulations but also resilience and reinvention. It is a compelling case study for any global brand looking to make its mark in the Japanese market.


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